US President Donald Trump has abandoned plans to impose a 20% fee on cargo vessels transiting the Strait of Hormuz, marking a sharp pivot in Washington’s approach to the critical waterway.
The proposed charge, which had sparked warnings from shipping executives that it could choke global trade, was replaced on Tuesday with a package of trade and investment agreements involving Gulf states.
The policy shift coincides with Washington preparing to reimpose a blockade on Iranian ports.
The move signals a transition from a broad-based tolling mechanism to a more targeted containment strategy, aiming to pressure Tehran while attempting to secure the cooperation of regional partners through economic incentives.
Markets are likely to assess the immediate impact on shipping insurance premiums and route security.
While the removal of the proposed toll alleviates fears of a direct cost shock to global supply chains, the renewed blockade on Iranian ports introduces new operational risks for vessels operating in the Persian Gulf.